DeKalb lawsuit alleges breach of contract in Intrenchment Creek land swap

DeKalb County on Thursday filed a lawsuit alleging that two limited liability companies associated with the founder of a local film studio breached a land-exchange contract with the county involving Intrenchment Creek Park.

In a land swap finalized in January 2021, the county exchanged about 40 county-owned acres in the southwest DeKalb park for roughly 53 adjacent acres owned by Blackhall Real Estate Phase Two LLC.

Blackhall Studios, founded by Ryan Millsap, had been operating in the same area.

As part of the transaction, Blackhall agreed to pay $1.5 million for improvements to the land it gave the county and to other property owned by DeKalb, according to County Attorney Terry Phillips. The agreement also called for Blackhall to donate $100,000, which the county would use to acquire green space before completion of the park improvements.

“Those obligations have not been met,” Phillips said at a news conference Thursday.

The lawsuit identifies Millsap as the principal behind the Blackhall defendants. An email to Millsap seeking comment on the lawsuit was not immediately returned Thursday morning.

An attorney for Blackhall also did not respond to an email or voicemail seeking comment.

Millsap announced in April 2021 the sale of Blackhall Studios and retained ownership of the 40 acres. DeKalb County officials had expected Millsap to use the swapped land to expand Blackhall Studios, potentially bringing economic benefits to the surrounding community.

“When DeKalb County enters into an agreement on behalf of our residents, we have a responsibility to protect the county’s interest, safeguard public interests, public access, and pursue accountability when commitments remain unresolved,” DeKalb Chief Executive Officer Lorraine Cochran-Johnson said at Thursday’s news conference.